Foreign investment plays a key role in Dominica’s energy market—analysis
As Dominica moves to become the world’s first climate-resilient nation, its energy sector is also seeing a big shift to align with the island’s ambitious but vital agenda. And foreign investments are playing a key role in making this change happen.
Investments from big development organizations such as the United Nations Development Programme (UNDP) and the Inter-American Development Bank (IDB) have “provided financial and technical assistance” for a number of energy projects in Dominica.
In a recent article by Energyportal.eu, these foreign investment has emerged as a “crucial catalyst” for the growth of Dominica’s energy market.
“Over the past decade, international investors and development partners have played an increasingly significant role in financing and implementing renewable energy projects in the country. These investments have not only helped to increase the share of renewable energy in Dominica’s energy mix but have also created new opportunities for local businesses and communities,” Europortal.eu wrote.
“Recognizing the need to transition to a more sustainable and affordable energy mix, the government of Dominica has been actively pursuing policies and initiatives aimed at promoting renewable energy development and energy efficiency,” it added.
Dominica has been maximizing its solar and geothermal energies since their shift to more sustainable sources of power. For its solar energy, several international companies have invested in the construction of solar photovoltaic (PV) systems on the island, “both at the utility scale and for individual households and businesses.”
Dominica’s geothermal power project in the Roseau Valley has also been receiving a great amount of support from international investors.
“This project, which is being financed by a consortium of international partners, including the World Bank, the European Union, and the Caribbean Development Bank, aims to harness the island’s abundant geothermal resources to generate clean, reliable, and affordable electricity,” Energyportal.eu wrote.
Aside from its foreign investors, Dominica is also getting the funding of the geothermal plant from the Citizenship by Investment (CBI) programme.
The CBI programme has been essential in building back better infrastructure for a hurricane-prone country like Dominica. Thousands of climate-resilient houses have already been turned over to its residents.
Dominica’s longstanding developing partner, MMC Development Ltd., has been in charge of overseeing the construction of the CBI-funded projects, making sure that every building abides by the country’s building codes and sustainability efforts.